“The last time that Apple Inc. shares nose-dived, investors were worried about the company’s overexposure to a slowing Chinese economy last summe,” Paresh Dave and David Pierson report for The Los Angeles Times. “Now the technology giant’s stock is plunging again — this time over fears about poor iPhone sales, not just in China but across the globe.”
“Apple isn’t commenting on iPhone sales, but financial analysts said the company’s trimming orders to its Asian suppliers suggests that the iPhone 6S hasn’t sold as well as expected,” Dave and Pierson report. “That dovetails with recent research from Morgan Stanley analyst Katy Huberty, who predicted an annual sales decline in Apple’s most popular product for the first time in 2016.”
“The specter of sagging iPhone sales underscores the growing uncertainty rippling across the global economy now that China, one of its chief drivers, appears to be running low on steam,” Dave and Pierson report. “That’s bad news for big corporations like Apple, which is betting on sustained, massive growth in the world’s second-largest economy to secure fresh profits.”
In pre-market trading, shares of Apple are down $2.75 (2.73%) to $97.95.
Full article here.
MacDailyNews Take: Shell game.
Let the buybacks proceed apace!
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